Published 13 hours ago • loading... • Updated 37 minutes ago
GM to pay $220 million to settle allegations it violated consumers' privacy
The agreement requires GM to obtain affirmative consent and limit data collection after states said 10 million drivers were affected.
On Thursday, a 36-state coalition led by Illinois Attorney General Kwame Raoul announced General Motors will pay $220 million to settle allegations it illegally sold private driver behavior and location data to third-party brokers and insurers.
From 2016 to 2024, GM enrolled millions of motorists in its "Smart Driver" feature, pitching it as a safety tool while secretly selling detailed driving metrics to brokers under contracts earmarked specifically for insurance products.
Dealership employees often enrolled customers without consent, and the OnStar app inaccurately told more than 370,000 drivers they were not tracked; insurers then used speeding and braking data to adjust premiums.
The settlement requires GM to obtain affirmative consent before collecting future data and implement stricter privacy oversight; Illinois receives approximately $10.5 million and Michigan receives about $7.2 million.
Michigan Attorney General Dana Nessel stated, "Drivers deserve to know what information about them is being collected," though a separate nationwide class-action lawsuit seeking cash damages remains active in court.